4/29/2013 1:04 PM
Being part of a city and the city being self-funded, what the city has done so far is actually ahead of schedule to avoid confusion is allow employees to keep their children on up to age 26, they did away with pre-existing conditions early as well.
So far no other changes exempt that we didn't have our premium go up this last half of the year. Since we were self-funded, the city as long as they have at least a 6 month reserve balance will not raise rates. Of course in the past 5 to 6 years we hadn't reached our reserve balance so we would have rates go up 3% in June, and 2% in December. Like I mentioned we didn't have to raise it in December.
The city pays 100% of our premium, we pay 100% of our family's premium but are able to be on the same plan.
I have a question, what is the percentage an employer must pay for an employee's insurance plan? I don't know of anything in the Affordable Care Act that says an employer must pay 100% of an employee's plan. When I worked for my last employer a Self-funded private University, they paid a portion of our family's insurance including mine. I think they paid 60% and we paid 40% (I think, but that was long ago)? Couldn't an employer get a simple (I know an oxymoron) insurance policy that isn't expensive, might have it cover prescriptions, the preventive care, but not much more and ask the employee to pay a portion of it? I have heard in this situation most employees won't participate and try to find cheaper insurance, or hopefully have the spouse's plan to use.
Mel
Melvin H. Waldron III, CGCS, Horton Smith Golf Course, City of Springfield/Greene County MO